UK GRID SOLUTIONS LIMITED ,UNITED KINGDOM vs. DCIT CIRCLE INTL. TAXATION 3(1)(1), NEW DELHI

ITA 2239/DEL/2023Status: DisposedITAT Delhi13 March 2024AY 2015-16Bench: SHRI C. N. PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)34 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that interest under Section 234B of the Act is not chargeable when tax has been deducted at source by the buyer. The chargeability of interest under Section 234D is consequential. For AY 2020-21, the AO was directed to verify the chargeability of interest under Section 234A.

What were the facts?

The assessee, a UK-based company, received payments from Indian customers for designing, manufacturing, and supplying power transmission equipment. The Assessing Officer (AO) treated a composite contract as a single unit, despite the assessee's claim of being only an offshore supplier. The AO also levied interest under Section 234B and 234D of the Income Tax Act.

What were the issues?

Whether interest under Section 234B is leviable when tax is deducted at source, and the applicability of other interest provisions for advance tax payments.

Which sections of the Income-tax Act were involved?

Section 234B,Section 234D,Section 234A,Section 209(1)(d)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(30)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI BENCH “D”: NEW DELHI

Before: SHRI C. N. PRASAD & SHRI M. BALAGANESH

For Appellant: Shri Ajay Vohra, Sr. Adv, Shri Aditya Vohra, Adv, Shri Arpit Goyal, CA
For Respondent: Shri Vizay B. Vasanta, CIT DR
Hearing: 15/12/2023Pronounced: 13/03/2024

PER M. BALAGANESH, A. M.:

1.

The appeals in ITA Nos. 2239,884, 885 & 2240/Del/2023 for AYs 2015-16, 2016-17, 2017-18 & 2020-21, arise out of the orders of the ld AO, DCIT, Circle International Tax-3(1)(1), New Delhi [hereinafter referred to as „ AO‟, in short] dated 29.08.2023 for AY 2015-16, 30.0

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 234B

All 10,214 judgments and leading authorities on Section 234B →

Recent GST High Court judgments

Search GST case law →